RBI releasing Rs 5,000 crore to ease liquidity for primary dealers

Mumbai, Jan 30 (IANS) The Reserve Bank of India (RBI) announced on Tuesday that it has decided to make an additional amount of Rs 5,000 crore available to the Standalone Primary Dealers (SPDs) under the Standing Liquidity Facility.

The amount will be available at the prevailing repo rate of 6.50 per cent, starting from January 31, according to an RBI statement.

The decision to release the amount is based on an assessment of the prevailing and evolving liquidity conditions, the central bank said.

The incremental limit for individual SPDs is being conveyed to them separately. All other terms and conditions of the facility shall remain unchanged

A primary dealer is an RBI-registered entity authorised to buy and sell government securities.

Standalone primary dealers are either subsidiaries of banks or entities incorporated under the Companies Act and registered as non-banking financial companies.